Devon Energy approached Canada’s Enerplus Corp., which holds 236,000 net acres in the Bakken, with an acquisition offer, people familiar with the matter told Reuters on Feb. 8.
Enerplus, which has a market value of about $3.14 billion, reported third-quarter Bakken production average of 77,702 boe/d (68% crude oil). An acquisition by Devon would more than double the company’s Williston Basin production, which averaged 54,000 boe/d in third-quarter 2023. This year, the company planned to reduce capital activity in the basin by 50% compared with 2023.
The company’s last major acquisition in the Williston was an $865 million purchase of E&P RimRock Oil & Gas in July 2022.
A combination with Enerplus would continue the dealmaking spree seen in the North American oil patch in recent months, which has included many of Devon's rivals — including Exxon Mobil, Chevron and Occidental Petroleum — making major acquisitions, Reuters reported.
There is no certainty that Devon and Enerplus will negotiate a deal, the sources told Reuters, requesting anonymity because the matter is confidential.
Devon declined comment and Enerplus did not immediately respond to a request for comment, Reuters reported.
Recommended Reading
Global Partners Buys Four Liquid Energy Terminals from Gulf Oil
2024-04-10 - Global Partners initially set out to buy five terminals from Gulf Oil but the purchase of a terminal in Portland was abandoned after antitrust concerns were raised by the FTC and the Maine attorney general.
Marketed: Outpost Energy Alberta Properties Divestiture
2024-04-03 - Outpost Energy has retained Sayer Energy Advisors for a corporate sale process on properties in Alberta.
Diamondback Prices Senior Notes to Help Cover Endeavor Deal Cost
2024-04-10 - Diamondback Energy’s notes will help cover cash consideration for the pending acquisition of Endeavor Energy as well as repaying debt owed by Endeavor.
GeoPark to Acquire Interests in Vaca Muerta
2024-04-11 - GeoPark Ltd. entered into a binding offer to acquire a non-operated working interest in Argentina’s Neuquen Basin’s Vaca Muerta Formation as it extends its reach across Latin America.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.